We are recommending the following credit spreads to the SEPTEMBER expiration cycle.

We are recommending credit spreads for our Portfolio #1 in the following issues.

JCP - J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., operates department stores. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. It also provides various services, such as styling salon, optical, portrait photography, and custom decorating. As of February 2, 2013, it operated 1,104 department stores in 49 states and Puerto Rico. The company also sells its products through its Internet Website, jcp.com. The company was founded in 1902 and is based in Plano, Texas.

APOL - Apollo Group, Inc., through its subsidiaries, provides online and on-campus educational programs and services at the undergraduate, master?s, and doctoral levels. The company offers various degree programs in arts and sciences, business and management, criminal justice and security, education, health care, human services, nursing, psychology, and technology through its campus locations and learning centers, as well as through its online education delivery system. It also publishes research-based math curricula and adaptive learning software; provides professional training and education through schools located in the United Kingdom; sells books and other publications; offers associate?s, bachelor?s, and master?s degrees in various program areas, as well as certificate programs at its Arizona campus locations and online; and provides bachelor?s and master?s programs at campuses in Chile and Mexico. In addition, the company offers program development, administration, and management consulting services comprising degree program design, curriculum development, market research, student admissions, and accounting and administrative services to private colleges and universities to establish their programs for working learners; and financial services education programs, including Master of Science in three majors, as well as certification programs in retirement, asset management, and other financial planning areas. Apollo Group, Inc. was founded in 1973 and is headquartered in Phoenix, Arizona.

We are recommending the following specific credit spreads.

Call credit spreads = Bearish call spreads.

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We are recommending credit spreads for our Portfolio #2 in the following issues.

YUM - YUM Brands, Inc., together with its subsidiaries, operates quick service restaurants in the United States and internationally. It operates in six segments: YUM Restaurants China, YUM Restaurants International, Taco Bell U.S., KFC U.S., Pizza Hut U.S., and YUM Restaurants India. The company develops, operates, franchises, and licenses a system of restaurants, which prepare, package, and sell various food items, as well as operates Chinese casual dining concept restaurants. It operates approximately 39,000 restaurants in 125 countries and territories under the KFC, Pizza Hut, and Taco Bell brands, which specialize in chicken, pizza, and Mexican-style food categories. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to YUM! Brands, Inc. in May 2002. YUM! Brands, Inc. was founded in 1997 and is headquartered in Louisville, Kentucky.

We are recommending the following specific credit spreads.

Call credit spreads = Bearish Call spreads.